O. Young Kwon, NYU Ph.D. in Economics had worked in securities industry for ten years as a Registered Investment Adviser. He taught Macroeconomics and Statistics. Prior to his academic career, he was an Economist/Bank Supervisor at the Bank of Korea (the Fed's counterpart). In 2009 he set up the... More

Investing is a zero-sum game, meaning when one guy gains, the other guy must lose. In order to win, what must we do? The DMI might help you to have an edge over the other guys. There is too much market information on SA, TV, Newspapers, magazines, etc. The problem is there is too much info to absorb. That's why DMI is brief and well-selected.

My focus is primarily on news about two areas: The Fed policy and Business Cycles. These are macro topics. DMI is a summary of what I listen to BBR, and read WSJ, Reuters, Bloomberg, AP, and Barons (weekend) from 5:a.m. to 7:00 a.m. everyday.

The numbers in parentheses (1-2-3) are one-month, two-month, and three-month terms.

The overall markets (DJIA, S&P 500, or NASDAQ) have their cycles. Individual securities (ETFs or Stocks) have also their own cycles given the market cycles. In general, all securities in The TANER System (20 ETFs and 40 stocks) show their own cycles from R to E to A to T to R and so on, but majority securities (60% of ETFs and 80% of stocks are in N (Neutral, meaning residual). Therefore all securities do not show any pattern. When any of your holding has T or R momentum, you pay your particular attention.

Introduction

O. Young Kwon, NYU Ph.D. (Economics) had worked in securities industry for ten years as a Registered Investment Adviser. In 2009 he set up the TANER System in order to synthesize performances and relative strengths of 20 ETFs and 40 equities thoroughly. The System captures dynamics of momentum changes of individual securities on the daily basis. The System also builds successfully their momentum trends over time.

Every marketday buys, sells, or exchanges (among mutual funds) can be made by TM. All trades except exchanges are posted on StockTalks to share these trades with you. For options players (for me options are excluded) call/put positions can be taken. My experience for three years propose following two Risk/Reward Tables: The Long-Term RR (LTRR) Table and The Short-Term RR (STRR) Table. . Please use this as a guide.

On Oct. 31, 2014 the Bank of Japan lifted global markets all together, and so did a somewhat coordinate actions of the central banks of China an the Eurozone on November 21, 2014.

The S&P 500 index and the Dow Jones industrials were closed at 2,063.50 and 17,810.56, respectively, making their record, and so did our Portfolio.

The Markets has become quiet and much less volatile in November, compared with those in October.

Another distinguishable market activity is that stocks and bonds have been quite often coupled, meaning both moving in the same direction. When stock move higher, bonds also rose due mainly to increasing global demand, induced by widening yield gaps. Stocks and bonds have advanced forth day in a row now.

The performance of our Portfolio has underperformed S&P 500 (without dividends) by 1.06 %. But a 3-week 1.17% (or an annual 20%) gain is satisfactory.

The current targets of The Asset-Allocation (A-A) Decision and The Cash-To-Capital (C/C) Ratio are a 75:25 and a 10%, respectively. The C/C Ratio is a near-term (a few weeks) control while The A-A Decision is a short-term (a few months) control. These two controls have worked out over October and November.

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